Income Taxes (Tables)

9 Months Ended

Sep. 30, 2013

Provision (Benefit) for Income Taxes

The Company had a provision (benefit) for income taxes for the nine months ended September 30, 2013 and 2012 that consisted of the following (in thousands):

	9/30/2013			9/30/2013
Current:
Foreign	$	—		$	—
Federal		—			—
State		5			4
Total		5			4
Deferred:
Foreign		—			—
Federal		(7	)		—
State		(1	)		—
Total		(8	)		—
Total:
Foreign		—			—
Federal		(7	)		—
State		4			4
Total	$	(3	)	$	4

Net Deferred Tax Assets

The tax effects of temporary differences that gave rise to deferred tax assets as of September 30, 2013, and December 31, 2012, were as follows (in thousands):

	September 30,			December 31,
	2013			2012
Deferred tax assets:
Net operating losses	$	29,740		$	28,824
Capital losses		4,153			3,907
Other asset reserves		93			268
Accrued expenses		23			19
Total deferred tax assets		34,009			33,018
Valuation allowance		(32,354	)		(31,432	)
		1,655			1,586
Deferred tax liabilities:
State deferreds		(1,655	)		(1,586	)
Total deferred tax liabilities		(1,655	)		(1,586	)
Net deferred taxes	$	—		$	—

Reconciliation of Statutory Federal Income Tax Rate to Actual Effective Tax Rate

The following is a reconciliation of the statutory federal income tax rate to the actual effective income tax rate:

	September 30,
	2013			2012
Federal tax (benefit) rate		(34.0	)%		(34.0	)%
Increase (decrease) in taxes resulting from:
State income taxes		(5.8	)		(5.8	)
Change in valuation allowance		39.4			39.2
Permanent differences		0.4			0.6
Other		0.2			0.3
		0.2	%		0.3	%